QGTCMI Employment Novation Opportunity ( ENO ) Questions & Answers

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1 QGTC SHIPPING (M.I.) INC c/o Qatar Gas Transport Company Limited (Nakilat),P.O. Box 22271, Doha, State of Qatar Tel Fax Shell International Shipping Services (Pte) Ltd c/o Shell Ship Management Ltd, Euromanx House, Freeport, Ballasala, Isle of Man, IM9 2AP, British Isles Tel: +44 (0) QGTCMI Employment Novation Opportunity ( ENO ) Questions & Answers 1 Who exactly is QGTCMI? What do they do? QGTC SHIPPING (M.I.) INC ( QGTCMI ) is a company registered in the Marshall Islands at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands. The company is a subsidiary of Qatar Gas Transport Company Limited (Nakilat). Nakilat has ownership interests in over 58 gas tankers including 100% ownership of 25 LNGs. QGTCMI have been employing seastaff for service on all Nakilat vessels since 21 December The first employees to QGTCMI were those officers 103 in total who had joined SISS in 2011 for service on the Nakilat vessels. QGTCMI is also the crew manager for the Nakilat ships now managed by NSQL. 2 How has QGTCMI developed since December 2011? Since 21 December 2011 all officers newly recruited for employment on the Nakilat vessels commence as employees of QGTCMI, whether the vessel they serve on is STASCO or NSQL managed. QGTCMI currently has some 150 seagoing officer employees. Since April 2012 all QGTCMI officers are paid their monthly net earnings directly from Nakilat. QGTCMI has established in Doha its in-house Marine Personnel Department. The Department is actively involved in its contractual and best practice responsibilities as an employer of seastaff. Accordingly the Department works closely with its appointed crew administrator (SSML in the Isle of Man) and the relevant ship Operators (STASCO and NSQL) Page 1 of 9

2 3 Who is NSQL and what is their relationship with QGTCMI? Nakilat Shipping (Qatar) Limited ( NSQL ) is, like QGTCMI, a subsidiary of Nakilat. It is Nakilat s in-house ships manager. it currently manages 4 x VLGCs. NSQL has appointed QGTCMI as its crew manager to provide crew manning and administration services in support of NSQL s ship management obligations. 4 What is being proposed now by QGTCMI? Nakilat has a long-standing aspiration to over time become the primary employer of all the seastaff on all the 29 Nakilat vessels, irrespective of which company is the ships manager. We consider it both important and correct to extend the opportunity of direct employment with QGTCMI to those other officers who joined the Nakilat project before QGTCMI is now well-established and is ready, willing and able to welcome additional numbers of employees. QGTCMI is therefore launching an Employment Novation Opportunity ( ENO ). Page 2 of 9

3 5 What is the Employment Novation Opportunity? Will everyone have the Opportunity? The December 2011 novatees were specifically advised in their employment Offer Letter that novation from SISS to Nakilat would occur. This ENO is addressed to SISS officers who both joined SISS before 2011 and joined SISS for employment on the Nakilat vessels: these officers did not have the reference to novation in their Offer Letter, so for such officers this ENO is an opportunity, but not an obligation. Officers who take the Opportunity will have their SISS employment novated to QGTCMI employment, in exactly same manner and content as occurred for the 103 December 2011 novatees. By definition novation ensures that the employee who agrees to his/her novation of contract, from one employer (SISS) to another (QGTCMI), will experience no unfavourable change to his contractual terms and conditions of employment. There is no employer selection process as such: all officers who are eligible for the ENO and take the Opportunity will then duly become QGTCMI employees. For example an officer who is currently involved in a disciplinary or potentially disciplinary procedure will remain eligible: in such a case QGTCMI would simply take over the responsibilities as employer and proceed appropriately. This ENO applies to SISS personnel who joined for employment on the Nakilat vessels. SISS personnel that were in the STASCO oil fleet prior to training for the Nakilat fleet and SISS personnel that were in the STASCO LNG fleet and moved across to support the Nakilat project implementation are not eligible for the ENO at this time. Fundamental to the notion of novation is the obligation and ability of the new employer to fully assume established terms and conditions of employment. Nakilat employment polices for both shore and seagoing employees do not encompass employer/employee pension enrolment and therefore SISS officers under the SISS/ American Maritime Officers Union (AMO) Memorandum of Agreement would not be eligible for the ENO. Notwithstanding the above, it is envisaged that there will continue to be seagoing positions for SISS personnel across the Nakilat fleet, in both the NSQL and STASCO managed fleets. 6 Rather than requesting novation, couldn t I just resign from SISS and take up an offer of employment with QGTCMI? What s the difference? You could, yes, but novation is a simpler and comprehensive process, ensuring that by definition both all established terms and conditions of your current employment are taken up by QGTCMI and that your new employer can inherit your full employment record data, so that QGTCMI will be able to see fully and clearly your present standing in the company. This ready availability of the full picture will assist greatly in, for example, ensuring continuity of planning and career development. Page 3 of 9

4 7 Is the Employment Novation Opportunity available for an indefinite period? Nakilat aspires to be the primary employer of the seastaff on our vessels : so the right and logical next step is for Nakilat to now offer this employment opportunity to officers with first-hand experience on these vessels. There is no obligation upon you to take the ENO and no penalty in not taking the ENO but, for sure, we would be very pleased if as many officers as possible took this Opportunity. We cannot keep a Novation opportunity open for an indefinite period but we realise officers will need time to consider the matter. For example, an officer who has just onsigned a vessel may quite understandably wish to make no decision until he has had some time at home to consult with others. So we ask simply that all officers give due and proper attention to the ENO and that those who decide to take the Novation opportunity advise us of their decision without undue delay. 8 Will there be any significant changes to my written terms and conditions ( T&Cs ) of employment? No. QGTCMI will adopt your established terms and conditions of employment. QGTCMI has since November 2011 joined SISS as the additional employing company in the Memorandum of Agreements which contain all the terms and conditions applicable to service on Nakilat vessels. All Nakilat vessels already have copies of the current T&Cs on board but for sake of good order each officer novating to QGTCMI will receive his/her own personal copy of the pertaining T&C, as an attachment to their QGTCMI Contract of Employment. It is considered to be in the best interest of all parties if the two employers (SISS and QGTCMI) continue to agree wherever possible common terms and conditions on the Nakilat vessels. 9 Will my current pay items be continued? Yes. Those in receipt of performance enhanced payments included in their monthly salaries, these payments will be continued. 10 What happens to the Shell Performance Share Plan (PSP) Awards? Nakilat/QGTCMI do not currently have such a share award scheme. The PSP awards which are firstly awarded and then vest 3 years later may only vest to SISS employees. Officers who leave SISS employment before the 3 years vesting date would not be eligible for the award. Page 4 of 9

5 11 What happens to the Shell Global Employee Share Purchase Plan (GESPP). Nakilat do not currently have such a share purchase scheme. GESPP is not available for QGTCMI employees. Upon leaving SISS you would have the option with regard to the monies you have saved in the current share-saving-year to either (i) take a refund of the amount saved or to (ii) leave the amount saved in the GESPP and buy shares at the end of the share-saving year on same terms as SISS employee GESPP members. 12 Who will pay my wages? QGTCMI officers are paid directly by QGTCMI from Doha. QGTCMI officers advise SSML of any/all changes to their Beneficiary Bank Details, upon receipt of which SSML advises QGTCMI. SSML calculates the net salary of each QGTCMI Officer and notifies QGTCMI of the net salary to be paid. Your monthly payslip and annual cumulative record will continue to be sent to you by SSML. 13 Will SSML remain my main point of contact on planning matters? Yes. QGTCMI has appointed a crew administrator to assist QGTCMI in its work: this is SSML in the Isle of Man. QGTCMI officers should continue to liaise with SSML as they did when SISS employees. However QGTCMI will be kept closely advised by SSML of the latter s planning intentions. Contractual matters reside with QGTCMI, as your Employer. 14 What will be the disciplinary procedures applicable to myself as an QGTCMI employee? Officers, regardless of who is their employer, will whilst on board any vessels, be subject to the ship manager s disciplinary procedures (which for STASCo and NSQL are the same) and SSML will coordinate the process. The manager s on board representative (ie the ship s master) can discipline and dismiss seafarers from the vessels. QGTCMI will be represented in any shore-side disciplinary meeting and any decision to dismiss from employment will only be made by QGTCMI. The ship s manager will correctly retain the right to determine suitability for appointment to its managed vessels. 15 Will my current contractual work/leave pattern be continued? Yes. And, as with any responsible employers, ensuring that officers offsign as per their contractual tours of duty will always be one of the key working principles for QGTCMI. Page 5 of 9

6 16 Will my upcoming expected offsigning/onsigning date alter because of joining QGTCMI? No. The change in your employer should not have any effect on ongoing relief plans. The Leave Days you have accrued at the time of novation will be carried forward in to QGTCMI. 17 Does the announcement of this ENO mean that NSQL will also now be taking more of the STASCO-managed Nakilat vessels? No. There is no such link. As we said in an earlier Question, Nakilat has a long-standing aspiration to be the primary employer of all the seastaff on all the Nakilat fleet. Note: The Master Service Agreement (MSA) existing between NSQL and STASCO makes provision to hand over management of the vessels between 2018 and There are currently no changes envisaged to this timeline. 18 If I join QGTCMI will I still be invited to STASCO s IFOCs and related conferences/seminars etc? Yes. Where Managers wish to meet with officers to discuss matters of interest to officers who serve on their ships, the invitation is logically to all such officers, regardless of whether they are employed by SISS or QGTCMI. Equally in due course NSQL, as Managers, will make similar invitations to such officers serving on the NSQL-managed vessels, whether SISS or QGTCMI employees. 19 As an employee of QGTCMI will I only be serving on ships managed by NSQL, and will then my promotion prospects be reduced? No. QGTCMI employees serve on all Nakilat vessels (currently 25 wholly-owned and the 4 jv VLGCs) and the QGTCMI Marine Personnel Dept works with SSML to ensure that all of our officers are fairly monitored at all times with regard to their career development. It will be a QGTCMI working principle to wherever possible fill a rank vacancy through promotion, and recruitment of higher ranks will be subject to showing proven unavailability of promotion options. STASCO joins with NSQL in advocating, in the interests of maximising motivation, loyalty and career prospects, a policy of promotion from within. Promotions will be planned and structured as much as possible, and not simply/only on basis of "being in the right place at the right time. Page 6 of 9

7 20 If my current employer considers I am ready for promotion, will I have to prove myself all over again when I move to QGTCMI? No. QGTCMI will be appraised of your current status by SSML and by viewing your employment record. Part-completed Task Sheets will be honoured and should be continued/ completed in the normal way. 21 Will QGTCMI be adopting the STASCO Goals and Performance Appraisal (GPA) system? Yes. Just as SISS supports the GPA/Appraisal system of both STASCO and NSQL (which are the same), so does QGTCMI. Given that QGTCMI and SISS employees may work during the year in vessels managed by both STASCO and NSQL, representatives from both managers will join together in the full-year reviews. 22 Who will complete my appraisal if I am a QGTCMI employee on a STASCOmanaged vessel? No change: it will be either you and the vessel s superintendent together (for Masters and Chief Engineers), or the Master/Chief Engineer where the appraisal is completed on board the vessel. 23 What are QGTCMI s rules re Further Education inc Study Leave? Will existing arrangements/plans be honoured? QGTCMI will adopt same rules/procedures as in your SISS contract. SSML will advise QGTCMI of all pre-agreed FE plans and these will be continued by QGTCMI. 24 Who will organise our attendance at requisite training courses? Company-required training courses will reflect those already established by ship managers STASCO and NSQL. The administration of the course attendance will be c/o QGTCMI s appointed crew administrator, SSML. 25 Will I have the opportunity to apply for shore-based positions in Shell/STASCO and Nakilat and its subsidiaries? Yes. Going forward it is expected that there will such opportunities in both Shell and Nakilat and these will be publicized across the Nakilat fleet. Certainly QGTCMI will not unreasonably refuse the resignation of a QGTCMI officer who wishes to take up a Shell/STASCO office appointment. Similarly QGTCMI will support opportunities for short term shore assignments where the benefit for all parties is clear. Page 7 of 9

8 26 Are there any implications to my long term employment if I don t take this Novation Opportunity? Will I still have opportunities to serve on the Nakilat vessels, both STASCO and NSQL managed? SISS any more than QGTCMI - will not be able to give you a 100% guarantee of employment for an indefinite period. QGTCMI, with its direct link to Nakilat as shipowners, has every assurance of its good future. Notwithstanding this ENO, both managers STASCO and NSQL will retain their options to employ both SISS/Nakilat and QGTCMI employees on their managed Nakilat vessels. 27 If I novate my employment to QGTCMI can I later change my mind and move back to SISS employment on the Nakilat vessels? No. Since December 2011 any/all contracts for service on Nakilat vessels are with QGTCMI. You could of course resign from QGTCMI and rejoin SISS at some later time if, at that later time, SISS offered you alternative employment on non-nakilat vessels. 28 What can I look forward to at QGTCMI? Employment expansion on Nakilat vessels will be via QGTCMI. The company s parent is Nakilat, the owners of this modern and large fleet on which you are employed. Nakilat is global player with significant financial backing and is expected to be actively involved in the marine industry for many years to come, as Nakilat s Mission Statement makes quite clear viz. To be the world s leading owner and operator of vessels for the transportation of LNG and associated products. A company managed by experienced marine professionals who understand and are responsive to the particular pros and cons of the working life at sea. A company determined to recruit quality seastaff and to thence give them every good reason to stay in the company, and with opportunities for career progression both at sea and ashore. 29 Will my current employer, SISS, object to the novation of my contract? No. QGTCMI have developed the ENO in the full knowledge and agreement of SISS, SSML and STASCO all of whom understand and support Nakilat s long-standing aspiration to be the primary employer of all the seastaff on the Nakilat vessels. SISS and QGTCMI will work together to ensure that novations are processed promptly and seamlessly, just as they did with the novations in December Page 8 of 9

9 30 Who do I contact if I require any additional information? SSSML will administer the ENO on behalf of SISS and QGTCMI. SISS and QGTCMI will jointly arrange teleconferences for officers both on board and ashore in support of this Q&A. It is also hoped to achieve a small number of ship visits. In support of the above the following may be contacted at any time: SSML Planning & Deployment Officer, Helen Wolstencroft QGTCMI Marine Personnel Manager, Miles Martin STASCO Fleet Managers, Philip Williams and John Cook. 31 How do I take the ENO and when will it take effect? Complete and mail the below Request for Novation of Employment. SSML will administer the process on behalf of the two employers. SISS and QGTCMI will then write to you personally with full details regarding the Novation process, recording the date you joined SISS and proposing the date your SISS contact will novate to and you become employee of QGTCMI. Attachments will include your QGTCMI Contract of Employment, the full applicable T&Cs, and the Beneficiary Bank Details form. There will be no break in your continuous employment (and continuous payment). Novation will normally be effected from the first day of the month after the month in which you made the request to novate. So, for example, if you submit the Request for Employment Novation in March 2013, the novation would take effect 1 st April Request for Novation of Employment >>> From: Name/Address/SISS Employee Number Date To SSMLENO@Shell.com Subject : QGTCMI Employment Novation Opportunity 2013 I wish to take the above Opportunity. Please send me the supporting documents for my attention. <<< Regards Name Page 9 of 9